Parent pays off mortgage, I repay parent - tax implications?

simonvdl

Hi there

My parents want to pay off my £100k remortgage and then I will pay back my parents after a couple of weeks when I have the money (from a friend who I lent the money to... long story). Are there any silly tax repercussions from this ghastly loan triangle? I'm basically trying to avoid an unnecessary monthly mortgage repayment. Or should I leave the parents out of it and just pay the damn £400?

Thanks

enthusiasticsaver

I would just pay the mortgage and be done with it. What happens if the friend does not repay the £100k. Your parents may need their money back and you will have to start again with a remortgage. Not worth the risk for £400

DCFC79

OP I hope you get the money back from the friend.

foxy-stoat

All sounds like a money laundering scam to me.

Good luck with it.

MEM62

What type of tax do you think you would be liable for?

Ergates

foxy-stoat wrote: »

All sounds like a money laundering scam to me.

Good luck with it.

It doesn't sound very much like a money laundering scam at all.

foxy-stoat

Ergates wrote: »

It doesn't sound very much like a money laundering scam at all.

Really?

OP has a mortgage for £100,000....but they lent £100,000 (or more) to a friend at some point, which they are due to pay back in 2 weeks.

OP wants to take his parents hard earned/saved £100,000 to clear his mortgage then gives them £100,000 cash in 2 weeks.

And they want to know about tax implications for the parents?

Why not just wait for 2 weeks when the £100,000 cash is given to the OP so they can clear the mortgage with it?

No one is going to ask where it has come from?